Earlier quoted context omitted.
No, the alternative is to have the government build subsidized housing and then enact strict price controls so that even poor families can afford to live reasonably. That's how it was done in Singapore for example and is why they can live in "spacious" 30-70 m^2 apartments despite having a higher population density than Hong Kong. See also http://en.wikipedia.org/wiki/Public_housing_in_Singapore .
Is that really how it works in SG? I've been told housing prices are outrageous there and if you're too poor to afford public housing you get shipped off to the poor house and are not allowed to leave unless you can find someone to take responsibility for you. Note: I've only visited SG so this is 2nd hand info through my friends in SG.
Public housing on the other hand is heavily subsidised and somewhat controlled for PRs and citizens. FYI Singapore was a giant slum up until the government formed the HDB board in the 1960s. The CPF (Singapore's retirement fund) can be used as a deposit against your apartment which nowadays start at SGD 300,000 if you go far from the city. As you can guess, this results in many people having a lot of cash tied up in non-liquid assets when they retire that leads to a host of other issues.
I moved to Singapore 3 years ago from Australia and love the place and prefer life here to Hong Kong any day.